DMCC has implemented plans to protect our employees and ensure that services to our clients are not interrupted during the existing coronavirus pandemic. All critical DMCC systems and client data reside in the cloud allowing our employees to work remotely from their homes for as long as needed. Our office will remain open with a limited number of staff in order to process mail, but all client appointments and meetings have been suspended until further notice. Clients and consumers needing help can continue to contact us by telephone and account messaging. Debt management plan payments and disbursements will continue to be processed as scheduled.
Debt settlement sounds like a sexy option to consolidate debt. Who wouldn’t want to pay half (or less!) of what you owe on credit card debt? But this is considered a desperation measure for a reason. The ads boasting that settlement companies like National Debt Relief can get at least 50% of your debt forgiven, don’t tell the whole story. That figure doesn’t include the fees you will pay for the service; the late penalties you incur while settlement negotiations take place; and whether a creditor will even accept the offers made. The results from this form of debt consolidation definitely are mixed. Do all the math before you choose this option. It should be noted that attorneys also offer debt settlement in addition to companies like National Debt Relief.
More consumers may be charging groceries because they’re strapped with other types of debt, such as student loans, which have doubled to about $1.6 trillion in outstanding debt since 2010, he notes. Auto loans and mortgages are also at all-time highs. After repaying monthly home, auto and student loans, some consumers don’t have much wiggle room, Micheletti adds.
Free consultations before you enroll in the program You should be able to talk about your situation with the company before you enroll, and find more the specifics of their debt relief program. Our debt consultants discuss your financial situation with you, tell you about all of your debt management options (not just our program), and go through the specifics of our program to help you figure out if Freedom Debt Relief is right for you.
An unsecured debt, in contrast, involves no collateral but instead is based on a contractual agreement entered into by the borrower and lender at the beginning of the relationship. Common examples of unsecured debts are credit cards, student loans, or utility bills. The risk of default on an unsecured loan is that your debt could be turned over to a collection agency and a lawsuit may be filed against you for repayment. Lenders of unsecured debt will be more stringent about pursuing repayment because their money has not been guaranteed. Unsecured debts generally have higher interest rates because of the increased risk taken on by creditors. Take credit cards, for instance – the average interest rate on credit cards today is around 14.9 percent. Payments made on unsecured debts usually fluctuate based on the outstanding balance.
I recently took out a debt consolidation loan to pay off my credit cards and have just the one bill – however, the loan didn’t quite cover my credit cards… I also opened two new balance transfer 0% credit cards to help cut the interest of the leftover credit card debt… I still don’t quite have enough to wipe it all into 3 bills – plus, I have a previous personal loan I have 2 more years of paying… what would be the best way to distribute these funds, and balance transfers… so that I’m cutting my interest payments, upping my cashflow so that I’m not
The professionals at National Debt Relief are experts at debt settlement and debt negotiation. They have many debt settlement letters proving how they’ve saved their customers thousands of dollars. Of course, the amount of savings can vary from customer to customer based on a variety of factors. Once you create your custom debt relief plan with them, they'll be able to tell you how much you can expect to save in your situation.
National Debt Relief is a legitimate, reputable company dedicated to helping clients address overwhelming debt. We're A+ rated by the BBB, and our team of debt arbitrators is certified through the IAPDA (International Association of Professional Debt Arbitrators). Furthermore, we have over 50,000 five-star reviews of the National Debt Relief program. For us to work effectively with creditors on behalf of clients, trust and professionalism are paramount. Therefore, if you're looking for a trusted partner to help you address your outstanding debts, National Debt Relief could be the right choice for you.
Even if you do end up with some credit score damage, the effects may not be quite as drastic as you think. Any negative items will remain on your credit report for seven years. However, the “weight” of those penalties on your credit scores will decrease over time. In other words, the effect of a debt settled last year will be more significant that one settled five years ago.
The professionals at National Debt Relief are experts at debt settlement and debt negotiation. They have many debt settlement letters proving how they’ve saved their customers thousands of dollars. Of course, the amount of savings can vary from customer to customer based on a variety of factors. Once you create your custom debt relief plan with them, they'll be able to tell you how much you can expect to save in your situation.
Hi Tamara! It’s great that you’re really starting to get a handle on this. I’d strongly suggest paying your debt using the avalanche/ladder method described in this post to minimize the amount of interest you’re paying. If you’d like help building a plan, you should schedule a free budgeting call with one of our credit counselors. Good luck getting rid of this debt!

You've seen the ads. "Hounded by creditors? More than $10,000 in debt? Call us to reduce your debt, lower your monthly payments and be debt free in 24 months." Gosh that sounds great, where do I sign up? Obviously, per the article title, debt relief programs are not as benign as they'd like for you to think. It works like so: You sign up with a debt settlement company. They negotiate with your creditors to allow you to pay a lump sum that is less than the full amount that you owe. You then pay the program a specific amount each month.
U.S. debt settlement differs slightly. There are several indicators that few consumers actually have their debt eliminated by full and final settlement. A survey of U.S. debt settlement companies found that 34.4% of enrollees had 75 percent or more of their debt settled within three years.[7] Data released by the Colorado Attorney General showed that only 11.35 percent of consumers who had enrolled more than three years earlier had all of their debt settled.[8] And when asked to show that most of their customers are better off after debt settlement, industry leaders said that would be an "unrealistic measure." [9]
Stick to your plan – When implementing the debt snowball plan, you need to pay the minimum amount due on all your other debts, except the one at the top of your list. Once you pay off your first debt, apply the payment from that debt to the next one – don't pocket the savings. Continue to pay only the minimum amount on all of your other debts. Eventually you will work down the list until they are all paid off.
Sort your credit card interest rates from highest to lowest, then tackle the card with the highest rate first. "By paying off the balance with the highest interest first, you increase your payment on the credit card with the highest annual percentage rate while continuing to make the minimum payment on the rest of your credit cards," writes former My Money contributor Hitha Herzog. 

A company can charge you only a portion of its full fee for each debt it settles. For example, say you owe money to five creditors. The company successfully negotiates a settlement with one of your creditors. The company can charge you only a portion of its full fee at this time because it still needs to successfully negotiate with four other creditors. Each time the debt settlement company successfully settles a debt with one of your creditors, the company can charge you another portion of its full fee. If the company's fees are based on a percentage of the amount you save through the settlement, it must tell you both the percentage it charges and the estimated dollar amount it represents. This may be called a "contingency" fee.

no pl (Fin) → Kredit m; (in pub, hotel, shop etc) → Stundung f; the bank will let me have £5,000 credit → die Bank räumt mir einen Kredit von £ 5.000 ein; to buy on credit → auf Kredit kaufen; to sell on credit → gegen Kredit verkaufen; his credit is good → er ist kreditwürdig; (in small shop) → er ist vertrauenswürdig; to give somebody (unlimited) credit → jdm (unbegrenzt) Kredit geben; we can’t give you credit (bank) → wir können Ihnen keinen Kredit geben; (corner shop etc) → wir können Ihnen nichts stunden; pubs do not usually give credit → in Lokalen bekommt man normalerweise nichts gestundet; letter of credit → Kreditbrief m, → Akkreditiv nt
Interest savings. If you have high-interest debt, a debt consolidation loan can save money with a low interest rate. You will save money on interest, for example, if you combine two credit card balances with annual percentage rates of 16.24% and 23.99%, respectively, into a debt consolidation loan with a 15% APR. “Rates can be considerably lower than credit card rates,” says John Ulzheimer, a credit expert who has worked at Equifax and Experian. Also, loans have to be paid off in a designated period of time, which gives you an end date for your debt. “You can’t say the same about credit cards,” he adds.
Fast Track Debt Relief offers one debt settlement service for both business and personal debt. While the website was bright and attractive, it lacked the transparency we like to see related to fees and program specifics. We found several customer complaints related to Fast Tracks inability to successfully negotiate down debt but still taking fees, leaving the customer worse off than before.
3. Transfer your balance (cautiously). It’s tempting to move a balance from a card with a high interest rate to a card with a substantially lower one (find one at Bankrate.com). And potentially that’s a smart move; you can save hundreds of dollars a year. But be careful: You should transfer a balance only if you’re committed to paying off the debt within an introductory low-interest-rate window (which typically lasts 12 to 18 months after the first billing cycle closes) and to making monthly payments on time, says Arnold. Otherwise your rate could skyrocket, possibly ending up higher than the one you just got rid of. (Important: You should also avoid making any purchases with the new card, as sometimes the low interest rate won’t apply to them.) In addition, know that you’ll probably be charged a balance-transfer fee, which is usually about 3 to 4 percent of the total amount transferred.
Disclose all program fees and costs before you sign up for a debt resolution program Have easy-to-understand written policies about its debt resolution program Give you an estimate of how many months or years it will wait before making an offer to each creditor Estimate its intended results, but never guarantee a specific settlement amount Tell you how much money you must save up before it will begin making offers to your creditors Send all resolution offers to you for your approval
You won't pay down your debt any faster if you view it as a form of punishment. So reward yourself when you reach debt payoff goals. "The only way to completely pay off your credit card debt is to keep at it, and to do that, you must keep yourself motivated," Bakke writes. Just make sure to reward yourself within reason. For example, instead of a weeklong vacation, plan a weekend camping trip. "If you aim to reduce your credit card debt from $10,000 to $5,000 in two months," Bakke writes, "give yourself more than a pat on the back when you do it." 
Settled debts: Of the methods we've discussed, debt settlement presents the biggest risk to your credit score because you're paying less than the full balance on your accounts. The settled debt will be marked as "paid settled" and will remain on your credit report for seven years. The more debts you settle, the bigger hit your credit score could take. In addition, late payments and even collections, which often occur when you use this method, will bring your score down.
So, why doesn't this lender rank at the top of our evaluations with such a strong track record? It's a criticism shared by several other lenders in the credit card consolidation sphere: Credible's loans can be used for anything you choose, not just to tackle your credit card debt. In other words, if you're financially disciplined enough to use your loan to pay off your credit card balances, fantastic! But, for many people who find themselves in need of credit card consolidation, they don't exactly have the most stellar history of making wise financial decisions. Without requiring funds to be used for that purpose, Credible isn't really in a position to help you improve your financial situation - and they don't give you any tools to do that either.
Let’s be honest – most people would prefer to solve challenges with debt on their own. You don’t have to share your finances with anyone, worry about judgement or put your fate in someone else’s hands. That’s why DIY strategies to reduce credit card debt like the ones we describe below are so useful. With some basic instruction, you can handle the issues on your own and move forward confidence.
If you like to fly by the seat of your pants—and are confident you can pay off debts on your own—just send extra payments. Include a note with your check saying "Apply to the principal." That way, your lender won’t get confused; they’ll know you’re trying to pay extra and can contact you if anything needs to be done differently. But check-in after the first two or three payments to be sure your instructions were understood and are being followed.

Before you consider applying for a loan, one option is to use a debt management plan to consolidate your monthly debt payments. With a plan like this, you must first find a credit counselor and work with them to formulate and stick to a repayment plan. Once you and your counselor agree on a plan, they will often try to negotiate with your creditors to see if they can get you a lower monthly payment and sometimes a lower interest rate.

This is another last resort method you can use to consolidate debt. Most retirement plans allow you to borrow against them, but there are some drawbacks to consolidating with a 401k loan. For starters, the loan has to be repaid in five years or it will be considered an early withdrawal and will be subject to a penalty and income tax. Not only that, if you leave your job the loan will be due within 60 days or you’ll face early withdrawal penalties. Think long and hard before borrowing from your retirement and do it only when the other option is withdrawing from retirement.
Consumers can arrange their own settlements by using advice found on websites, hire a lawyer to act for them, or use debt settlement companies.[6] In a New York Times article, Cyndi Geerdes, an associate professor at the University of Illinois law school, states "Done correctly, [debt settlement] can absolutely help people". However, stopping payments to creditors as part of a debt settlement plan can reduce a consumer's credit score by 65 to 125 points, with higher impacts on those who were current on their payments prior to enrolling in the program.[9] And missed payments can remain on a consumer's credit report for seven years even after a debt is settled.[9]

Freedom Debt Relief (FDR) was a blessing from beginning to end. I enrolled four debts into the program totaling close to $60,000. FDR negotiated my debts down by 43%. I graduated the program in just 2.5 years, which is 19 months ahead of the estimated graduation date. I accomplished this by making as many additional deposits as I could by working lots of overtime and making sacrifices in budgeting.

When that happens, consolidation may be a good option for getting your debt back under control. And, helpfully, there are a number of solid options for consolidating credit card debt. In the article below, we’ll take a look at some of our choices for the best credit cards for consolidation, including 0% APR offers, no fee balance transfers, cards for fair credit, business credit cards, and personal loan options.
Editorial Note: This content is not provided or commissioned by the credit card issuer. Opinions expressed here are the author's alone, not those of the credit card issuer, and have not been reviewed, approved, or otherwise endorsed by the credit card issuer. Every reasonable effort has been made to maintain accurate information, however all credit card information is presented without warranty. After you click on an offer you will be directed to the credit card issuer's web site where you can review the terms and conditions for your offer.
Great program. I tried negotiating on my own, what a pain, the bullish attitude most Credit card companies have was hard to take. FDR was the answer. It takes time and patience on the consumers part for the program to work. I have been in the program over 3 years , several settlements later, one in July and September, I can see how the program is working for me. My credit has improved, I have learned to live without a credit card, within my means and best part NO creditor calls. I know it is my responsibility to keep track of my credit, make my payments every month and just set back and let the program work.
It’s not the most desirable way to consolidate debt, by far, but if have to choose between life insurance loan or bankruptcy, borrowing from your insurance may be best. You can typically borrow up to the cash value of your loan and use the proceeds to consolidate debt. Your insurance company won’t require you to make payments as long as the loan is less than the cash value of the policy, but it’s a good idea to make payments anyway. If you don’t repay the loan, then the death benefit will be used to cover what you borrowed and your survivors may not get anything at all.

During the course of our study on average credit card debt, we observed some significant differences among different demographics and regions. The most prominent differences exist among peoples of different race, age, gender, and state of residence. In the following sections we explore these differences to see how average credit card debt varies among the population.


As you make payments on your credit card or other lines of credit, the liquidity risk is lower because you can quickly withdraw the money again if necessary (assuming your credit isn't frozen). That would increase your debt, of course, but it lowers the risk of being unable to keep the electricity running. On the other hand, if your extra cash is used to pay off an auto loan, you can't just get another loan in a couple of hours.
Government help with credit card debt. There's good news and bad news about this approach. The bad news is that "government debt relief programs" don't technically exist. But the good news is that the federal government does take steps to protect you from scams, offers online advice at Dealing with Debt and provides services that help you pay your bills.
The above graph presents a single anomaly which occurred in 2005. During that time there was a severe drop in average credit card debt, despite total outstanding revolving debt continuing to rise. This outlier was likely due to the spike in bankruptcy filings in the United States around that time. A law went into effect at the end of 2005 which made it more difficult for individuals to declare bankruptcy. This resulted in a rush of filings before the law's deadline - over 2 million Americans had their debts forgiven that year due to these filings.
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